China's digital yuan: The beginning of a new era

Article signed by Dr. Oriol Caudevilla, CBCat collaborator.

The digital yuan will usher in a new era in payments, allowing China to be the first major economy to develop its own CBDC (central bank digital currency).

Last April, after several years of work (the investigation began in 2014), the Chinese Government announced the start of trials of the country's central bank digital currency (CBDC), of digital currency electronic payments (DCEP), or the digital yuan, in four major cities: Shenzhen, Suzhou, Chengdu and Xiong'an, despite the Covid-19 pandemic. On August 14, China went a step further: its Ministry of Commerce announced that it would soon begin a pilot test of the country's CBDC in several new areas, including the Greater Bay Area, which includes both special administrative regions of Hong Kong and Macao. Testing in Hong Kong has just begun.

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